(1) A record of a putative holder showing an unpaid debt or undischarged obligation
is prima facie evidence of the debt or obligation.
(2) A putative holder may establish by a preponderance of the evidence that there
is no unpaid debt or undischarged obligation for a debt or obligation described in
subsection (1) of this section or that the debt or obligation was not, or no longer
is, a fixed and certain obligation of the putative holder.
(3) A putative holder may overcome prima facie evidence under subsection (1) of this
section by establishing by a preponderance of the evidence that a check, draft, or
similar instrument was:
(a) Issued as an unaccepted offer in settlement of an unliquidated amount;
(b) Issued but later was replaced with another instrument because the earlier instrument
was lost or contained an error that was corrected;
(c) Issued to a party affiliated with the issuer;
(d) Paid, satisfied, or discharged;
(e) Issued in error;
(f) Issued without consideration;
(g) Issued but there was a failure of consideration;
(h) Voided not later than ninety days after issuance for a valid business reason set
forth in a contemporaneous record; or
(i) Issued but not delivered to the third-party payee for a sufficient reason recorded
within a reasonable time after issuance.
(4) In asserting a defense under this section, a putative holder may present evidence
of a course of dealing between the putative holder and the apparent owner or of custom
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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